Top 5 Hotel Stocks in India

Published on December 26, 2025 | 4 min read

With the increase in leisure travel and tourism, the hotel industry in India has seen rapid growth. As the economy evolves, more people have disposable income to spend on travelling and new experiences.

The significant growth of the hotel industry, hotel stocks has caught the attention of many investors and can be a great addition to your portfolio as well. Let’s explore the top 5 hotel stocks you can invest in based on market capitalization.

Top 5 Hotel Stocks in India

With the increasing travel demand, hotel stocks have significant high-growth potential in the long term. This makes them suitable for investors looking for capital appreciation and long-term investment growth.

The following are the top 5 hotel stocks in India based on Market capitalization.

Sr.No.	Name	Mar Cap (₹ in crores)
1.	Indian Hotels Co	105341.11
2.	ITC Hotels	40969.72
3.	EIH Ltd	22910.22
4.	Chalet Hotels	18959.35
5.	Leela Palaces Hotels	14598.94

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Indian Hotels Co Ltd

The Indian Hotels Company Ltd (IHCL) was founded in 1902 by Jamsetji Tata and is a part of the Tata Group. IHCL is India’s largest company in the hospitality industry with over 335 hotels across 4 continents and 12 countries.

The Indian Hotel Co Ltd has a market capitalization of ₹1,05,341.11 crores. Between the years 2020-22, the company had high debt with negative profits but showed significant recovery post-pandemic.

ITC Hotels Ltd

ITC Hotels Ltd was established in 1975 and is a leading Indian hospitality company, operating over 140 hotels in various countries. ITC hotels are known for providing an eco-friendly luxury experience to their customers along with culinary excellence.

The ITC Hotels Ltd entered the stock market in January 2025 after demerging from its parent company, ITC Limited. The company has a market capitalization of ₹40,969.72 crores and showed favourable profit growth in 2024-25.

EIH Ltd

EIH Ltd was founded in 1949 and is a flagship company of The Oberoi Group. It is one of the major players in the hospitality industry and operates 30+ hotels and cruises under the Oberoi, Trident and Maiden brands.

EIH Ltd has a market capitalization of ₹22,966 crores and has significantly grown its profits from 2023 onwards. The company has an average 5-Year EBIT of ₹415 crores.

Chalet Hotels Ltd

Chalet Hotels Ltd, founded in 1986, is a part of the K Raheja Corporation Group and operates high-end hotels and other commercial projects in metropolitan cities. Chalet Hotels Ltd operates luxury hotels such as JW Marriott, The Westin and Novotel.

Chalet Hotel Ltd has a market capitalization of ₹18,959.35 crores and a 5-Year Profit CAGR of 6%. The company has an average 5-Year EBIT of ₹269

Leela Palaces Hotels

Leela Palaces Hotels is an award-winning Indian luxury hospitality brand which was founded in 1981. It is famous for introducing local culture, art and cuisine to its guests and offering an authentic experience.

Leela Palaces Hotels was listed on the stock market in May 2025 and has a market capitalization of ₹14,598.94 crores. Leela Palaces Hotels has a stock P/E ratio of 84, showing investors high future growth expectations.

Factors Influencing Hotel Stocks in India

Hotel stock prices in India are heavily influenced by economic growth, seasonal demand, market position, etc. Let’s understand these factors in detail.

Economic Growth

A strong GDP growth means more disposable income to invest in travel, which boosts demand for hotels, increasing their profits.

Infrastructural Development

For a booming tourism industry, government investments in infrastructure initiatives such as new airports and highways improve connectivity. A good infrastructure would encourage tourism and offer a smooth experience for travelers.

Operational Performance Metrics

When evaluating a hotel’s profitability, investors assess metrics such as Revenue per Room (RevPAR), Average Daily Rates (ADR) and occupancy rates. These metrics not only help evaluate revenue generation but also efficiency.

Government Policies & Regulations

Changes in government policies regarding GST or tourism directly impact the hotel's operational costs and profit margins, which affects stock prices.

Hotel stocks are suitable for investors seeking long-term capital appreciation and who want to take advantage of the growing hospitality industry. Before investing in hotel stocks, fundamentally analyze the company’s financials and understand its business model to make sound investment decisions.

About Author

Mariyam Sara

Sub-Editor

holds an MBA in Finance and is a true Finance Fanatic. She writes extensively on all things finance whether it’s stock trading, personal finance, or insurance, chances are she’s covered it. When she’s not writing, she’s busy pursuing NISM certifications, experimenting with new baking recipes.

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